IASB seeks feedback on proposed changes to SMEs Accounting Standard
The International Accounting Standards Board (IASB) recently proposed amendments to the IFRS for SMEs Accounting Standard, aiming to assist small- and medium-sized entities (SMEs) in addressing international tax reform. This marks the first instance where the IASB has suggested urgent amendments to the Standard outside of its regular review process.
The proposed amendments specifically target the income tax section of the Standard and seek to provide the same relief as the amendments introduced in May 2023 to IAS 12 Income Taxes. The changes are a response to the Organisation for Economic Co-operation and Development’s (OECD) Pillar Two model rules.
According to Andreas Barckow, Chair of the IASB, these proposed amendments aim to provide timely relief for affected SMEs while ensuring that users of financial statements receive the most informative information possible.
The OECD introduced the Pillar Two model rules in December 2021 to ensure that large multinational corporations are subject to a minimum tax rate of 15%. Over 135 countries and jurisdictions, representing more than 90% of global GDP, have already agreed to these rules.
Stakeholders are encouraged to provide their feedback until July 17.
Read more and respond here.